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FTX, Sam Bankman-Fried and the Fundamental Problem of Cryptocurrencies

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Cryptocurrency Values have been hit hard. The granddaddy of them all, Bitcoin, is now selling for around $16,000, down from a high of $67,000 a year ago. FTX and its charismatic co-founder, Sam Bankman-Fried, were the darlings of the crypto world. The exchange quickly became a $30 billion entity: now it is bankrupt.

This episode of What’s Ahead explains the basic problem of almost all cryptos: they are not real money. Their volatility makes them speculative vehicles, not reliable trading instruments.

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There is a class of cryptos that could develop into a real alternative to government currencies.

But it’s not there yet.

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